EBRD opens two credit lines to Azerbaijani Bank Respublika
Baku, Azerbaijan, Dec. 18
By Emin Aliyev - Trend:
Under its Azerbaijan Multi-Bank Framework Financing Facility the EBRD is providing $ 9.4 million to Bank Respublika, which has wide national coverage and is the sixth-largest bank in Azerbaijan in terms of assets, EBRD said on Tuesday.
A credit line of $ 5.4 million will be used for on-lending to micro, small, and medium-sized enterprises (MSMEs) to finance investments and working capital for local businesses with medium and long-term loans.
"This will help to address the poor access to credit faced by enterprises in the real sector - strategic priority for EBRD in Azerbaijan," according to the report. "Some $ 1 million of the loan will be provided by BP and its co-ventures aimed to support MSMEs along the BTC/SCP pipelines as part of the Sustainable Development Initiative Programme in Azerbaijan."
"Another credit line of $ 4 million will be used for mortgage lending to private individuals, enabling them to finance the purchase, renovation or construction of homes," according to the report.
Bank Respublika has been an active partner of EBRD since 2004 and was the first bank in Azerbaijan to receive an EBRD mortgage development financing loan in 2008.
"Small and medium-sized businesses are crucial for the sustainable development of the non-oil and gas economy in Azerbaijan," Head of Resident Office, Neil McKain said. "We are pleased that Bank Respublika will be the first financial institution to benefit from this new phase of cooperation with BP and its co-ventures under the Sustainable Development Initiative, which will bring more financing to the MSME sector and improve access to finance."
Since the start of its operations in the country, the EBRD has invested around $ 2 billion in about 137 projects. Around 73 transactions with a total value of approximately $ 540 million have been signed with financial institutions in Azerbaijan. In addition to partnering with Bank Respublika the EBRD has signed twelve other projects totalling $ 90.1 million during 2013.